Many co-op owners at the co-op board approval stage say to themselves, “Well, then we’ll just do what we want to do without the co-op board’s approval.”  But don’t even go there.  Some buildings, in fact, will only grant work men access to the building when the co-op board notifies them that a signed alteration agreement is in place.  If you go it alone then, you could find that your contractors show up for work, only to be bounced right back out that elegant revolving door.   Then again, even if what you’re going for is small, the second there’s plaster dust on the hall carpeting, or your neighbors hear a circular saw, both you and your renovation could be toast.

For all of the reasons above and a few more besides, your building will likely make you put down a substantial security deposit before you begin your renovation. They will also require you to purchase insurance sufficient to cover any renovation damage. And, in some cases, they may also require a bond. Should you not pay your contractors, architect or others involved in your renovation, your co-op board will almost always have a clause in your alteration agreement requiring you to remove any mechanic’s liens placed against the property.
Since you will be held liable for any damages your renovation causes to either the building itself or other shareholder’s apartments, your insurance carrier will likely require complete documentation of all areas of your building and other resident’s apartments likely to be affected by your renovation to avoid paying for damages that were not yours. Your insurer, for instance, does not want to pay for a crack in the wall of your next door neighbor’s apartment if, in fact, the crack was already there before your work even began. This will likely involve having a representative from your insurance company enter, photograph and document your neighbor’s apartments and belongings, which, let’s face it, is not likely to earn you warm, fuzzy feelings from your neighbors.

As every co-op owner knows, in order to undertake a renovation, you need to sign an alteration agreement with your co-op board.  Basically, the alteration agreement is a contract between you as the shareholder and the co-op which ensures that your renovation will not damage either your building or your neighbor’s apartments  and which spells out the rules and regulations. While some of this is negotiable–and you will definitely need a sharp attorney for this stage–much of it is not.   Another reason you will require a good attorney before you sign the agreement, is to check for hidden problems.  Since you will need an Amended Certificate of Occupancy from the Building Department for instance, a good attorney will check to ascertain whether your building has any open issues with the Building Department which might considerably slow down your ability to get it.

Alterations can affect the building’s heating and plumbing systems, damage property in other units (which you will be responsible to repair and/or replace) and your co-op will want to protect themselves against this.  Your co-op board will review your architect’s drawings and once the board approves your plan, your renovation plan will be “fixed” with no other alterations allowed.  If you get tempted to make some last minute changes down the road, remember that the co-op board will be sending in an inspector once you’re done to ensure that the plan they originally approved has not been exceeded in any way.  City buildings, and those engaged in renovations, also must comply with Local Law 58, which mandates that no renovation within an elevator building or above the first floor in a walk-up can interfere with access for the disabled. And Murphy’s Law being what it is, you know there are always going to be those moments when one of your contractors yells, “Uh oh!” having just discovered an unanticipated problem which will necessitate further negotiations with the co-op board before anything can go forward.  If you reside in a pre-war or other older building, that could mean that you’re soon engaged in an unending game of “Forward, Halt, Forward, Halt.”

Sure, you have plenty of family and friends who have renovated their places, so you’re pretty sure you know the drill, but what’s a little plaster dust, if it gets you the home of your dreams, right? Well, maybe.

To make the right decision, now’s the time when you need to start to qualify that maybe. Are you basically looking for a 50K kitchen remodel? A new bath with a Jacuzzi? Or will rearranging the space you have give you what you want and need? These are all very different questions with very different lived realities during the renovation itself. Can the work be done while you’re away? Or are you looking at months when you’ll need to make a mad dash up the street to Bareburger when you need to use a bathroom?

If you’re focused on the building you’re in, the next question to ask is whether even the most costly renovation will give you your wish list? Or, would a renovation only be an interim compromise that will leave you apartment hunting a couple of years up the road? Finally, figure out what the smartest move would be for you on a strictly financial basis. If you’re flush with cash and have good credit, this may be a great time to move, but then again, even if you’re under water and have to write a check to the bank to move, interest rates are only going one way right now and that’s up, so you may want to consider whether taking the hit now, but finding an apartment better suited to your needs while rates are low isn’t the wisest move. Then too, with wildly attractive mortgage options out there and the approximately 20% market correction, this may be your last chance to score an apartment you normally wouldn’t be able to touch.

You’re sitting around relaxing after dinner and suddenly you realize you’re at the point of no return in the renovate or relocate conversation and it’s time to make a decision…You know you want more space, or a brand new kitchen…possibly another bath and you think if you just reworked the space you have a renovation of your apartment might well give you what you want. But then again, there are certainly other apartments out there that might give you your wish list without all the hassles of reconstruction. Sure, you can survive plaster dust seeping into the wood grain of your furniture, but do you want to? So, how do you get off the see-saw of the renovate or relocate discussion and begin to move forward? It may help to consider some of the following issues.
Location
The first question to ask yourself in the famous renovate or relocate debate is whether location is the most important issue for you? Are you, in fact, wedded to your building for life? Or could you see yourself giving up that chic residence near the U.N. for a Sutton Place bargain? Every neighborhood and every building in it have their respective issues, so ask yourself honestly whether you absolutely have to stay where you are or whether it isn’t time to start doing some apartment hunting.